That sounds crazy, so I reviewed their privacy policy[0]. It looks like Kite now requires users to whitelist the directories it indexes and automatically purges files you remove from the local index.
The Privacy Policy says that:
> When you use our services, we may collect [...] Any source code files on your computer's hard drive that you have explicitly allowed our services to access. To learn how to control access to your source code files, please visit our FAQ.
The FAQ[1] says
> Kite only uploads files that:
>
> 1. Have a .py file extension,
> 2. Are children of a whitelisted directory,
> 3. And are not ignored by a .kiteignore file.
That doesn't seem like "any source code file on your computer" to me - unless it whitelists root by default, which would be a hella dark pattern.
Also, removing a file from the local index should remove it from the server as well [2]
[0] https://kite.com/privacy [1] http://help.kite.com/category/30-security-privacy [2] http://help.kite.com/article/10-how-do-i-delete-files-from-k...